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1、BasicFactsaboutIndiaWithapopulation1billion,Indiaisacountryofstrikingcontrastsandenormousethnic,linguistic,andculturaldiversity.Therearemorethan1,600languages,nearly400ofwhicharespokenbymorethan200,000people.Manyofthe25statesthatmakeupIndia'sfederationarelar
2、gerthanmostcountries.Thirteenstateshavemorethan20millionpeople,sixhavepopulationsof60million,threeexceed80million,andonehasmorethan160millionpeople.Thesestatesdiffervastlyintermsoftheirnaturalresources,administrativecapacity,andeconomicperformance.Agricultur
3、eplaysanimportant,althoughdiminishingroleintheeconomy,accountingforabout29percentofthecountry'sgrossdomesticproduct(GDP)in1998-99and64percentofthetotallaborforce.Industryandmanufacturinghaveexpandedoverthepastdecade.Thesesectorsnowaccountforabout24percentand
4、16percentofGDP,respectively.Theservicesectorhasstrengthened,growingfrom36percentin1980toabout40percenttoday.India'ssoftwaresubsector-oneofthemostdynamicintheworld-hasexperiencedasustainedrapidupswing,growingby56percentin1998-99.Indiahasmadeenormousstridessin
5、ceitachievedindependencemorethan50yearsago.Thecountry'sdevelopmentstrategyhashelpedeliminatefaminesandbringdownhighilliteracyandfertilityrates.Indiahasalsodevelopedadiversifiedindustrialbaseandarelativelylargeandsophisticatedfinancialsector.Thesesuccesseshav
6、etakenplaceagainstabackdropofIndia'swell-establisheddemocraticsystem-thelargestintheworld-whichhasprovideditspopulationwithanunusualdegreeofpoliticalfreedomandstability.Yetthedevelopmentstrategythatproducedtheseresultsemphasizedimportsubstitutionandgovernmen
7、tintervention,ultimatelyover-extendingthepublicsector,andprovedtobeunsustainable.ProtectionismisolatedIndiafromtherestoftheworld,andthecountry'sshareofworldtradedeclinedfrom2percentinthe1950stolessthanhalfofonepercentinthelate1980s.Thestrategyalsodiscouraged
8、exports,createdrecurrentshortagesofforeignexchange,andmadethebalanceofpaymentsextremelyvulnerabletosuddenchangesininternationalmarkets.Witheconomicgrowththusimpeded,povertyreductionalsolagged.By
